The ONE Group Hospitality, Inc. Quarterly report [Sections 13 or 15(d)]

Leases (Tables)

6 Months Ended

Jun. 28, 2026

The components of lease expense for the six periods ended June 28, 2026 and the six periods ended June 29, 2025 are as follows (in thousands):


	June 28,			June 29,
	2026			2025
Lease cost
Operating lease cost	$	23,482		$	23,405
Finance lease cost
Amortization of ROU assets		102			108
Interest on lease liabilities		34			47
Total finance lease cost		136			155
Variable lease cost ⁽¹⁾		11,704			10,024
Short-term lease cost		2,050			1,927
Total lease cost	$	37,372		$	35,511

Weighted average remaining lease term
Operating leases		13 years			13 years
Finance leases		2 years			4 years
Weighted average discount rate
Operating leases		10.45	%		10.36	%
Finance leases		11.14	%		11.14	%

(1)	Variable lease cost is comprised of percentage rent and common area maintenance.

The components of finance lease assets and liabilities on the condensed consolidated balance sheet were as follows (in thousands):


		June 28,			December 28,
		2026			2025
Finance lease right-of-use assets ⁽¹⁾		$	482		$	573
Current portion of finance lease liabilities ⁽¹⁾			202			191
Long-term portion of finance lease liabilities ⁽¹⁾			336			457

(1)	Finance lease assets and liabilities are included in other assets, other current liabilities, and other long-term liabilities on the condensed consolidated balance sheet.

Supplemental cash flow information related to leases for the period was as follows (in thousands):


	June 28,		June 29,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	17,814	$	22,003
Operating cash flows from finance leases	$	102	$	108
Financing cash flows from finance leases	$	130	$	136
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	14,731	$	864

As of June 28, 2026, maturities of the Company’s operating lease liabilities are as follows (in thousands):


2026, six periods remaining	$	18,317
2027		44,670
2028		49,362
2029		49,974
2030		49,782
Thereafter		398,061
Total lease payments		610,166
Less: imputed interest		(289,898)
Present value of operating lease liabilities	$	320,268

As of June 28, 2026, maturities of the Company’s finance lease liabilities are as follows (in thousands):


2026, six periods remaining	$	131
2027		253
2028		231
Total lease payments		615
Less: imputed interest		(77)
Present value of finance lease liabilities	$	538